Wachovia dives in swan-song quarter

Wachovia Corp. reported a massive third-quarter loss today in what is likely to be its last earnings report as an independent company.
OCT 22, 2008
By  Bloomberg
Wachovia Corp. reported a massive third-quarter loss today in what is likely to be its last earnings report as an independent company. The Charlotte, N.C.-based bank, which is being bought by San Francisco-based Wells Fargo & Co., posted a $23.89 billion quarterly loss, or $11.18 per share, compared to a profit of $1.62 billion, or 85 cents per share, in the year-ago period. Wachovia set aside $6.63 billion to cover loan losses and build its credit reserves during the quarter. The poor performance also included an $18.7 billion impairment charge, which reflected lower market values and terms of the pending Wells Fargo all-stock transaction, which is estimated at $14 billion. Assets under management were down 24% from the end of 2007, at $209.1 billion, due to net outflows of $40.6 billion and $25 billion in lower market valuations. The Wells Fargo transaction is on pace to close in the fourth quarter, Wachovia officials said. “Although this has been a challenging quarter, Wachovia's underlying businesses remain solid and our franchise exceptionally attractive,” Robert Steel, the bank’s chief executive officer and president, said in a statement.

Latest News

Married retirees could be in for an $18,100 Social Security cut by 2032, CRFB says
Married retirees could be in for an $18,100 Social Security cut by 2032, CRFB says

A new analysis finds long-running fiscal woes coupled with impacts from the One Big Beautiful Bill Act stand to erode the major pillar for retirement income planning.

SEC bars New Jersey advisor after $9.9M fraud against Gold Star families
SEC bars New Jersey advisor after $9.9M fraud against Gold Star families

Caz Craffy, whom the Department of Justice hit with a 12-year prison term last year for defrauding grieving military families, has been officially exiled from the securities agency.

Navigating the great wealth transfer: Are advisors ready for both waves?
Navigating the great wealth transfer: Are advisors ready for both waves?

After years or decades spent building deep relationships with clients, experienced advisors' attention and intention must turn toward their spouses, children, and future generations.

UBS Financial loses another investor lawsuit involving Tesla stock
UBS Financial loses another investor lawsuit involving Tesla stock

The customer’s UBS financial advisor allegedly mishandled an options strategy called a collar, according to the client’s attorney.

Trump's one big beautiful bill reshapes charitable giving for donors and advisors
Trump's one big beautiful bill reshapes charitable giving for donors and advisors

An expansion to a 2017 TCJA provision, a permanent increase to the standard deduction, and additional incentives for non-itemizers add new twists to the donate-or-wait decision.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.